Category: The Citizen

Small-scale miners could gain easier access to financing, modern technology, geological data and reliable markets under sweeping reforms proposed in a government-commissioned report that also recommends the establishment of a $100 million mining development fund.

The report, presented to the government on Friday, outlines measures aimed at boosting productivity, accelerating formalisation and strengthening the contribution of small-scale mining to Tanzania’s economic growth.

The recommendations include the creation of a dedicated miners’ bank, improved access to affordable credit, expanded geological information services, wider adoption of modern mining technologies and stronger occupational health and safety standards. Presenting the findings, committee chairman Victor Tesha said the proposals seek to address longstanding challenges that continue to limit the growth of small-scale mining despite its significant contribution to the sector.

‘Small-scale miners contribute about 40 percent of the mining sector’s revenues, but many still face major obstacles, including limited access to finance, inadequate geological data, outdated equipment and weak institutional support,’ he said.

According to the report, about 72 percent of small-scale miners still rely on basic mineral recovery methods, resulting in low productivity, high operating costs and increased environmental and safety risks.

While acknowledging progress made through reforms such as the Mining Act and the Mineral Policy of 2009, the report argues that more targeted interventions are needed to unlock the sector’s full potential.

It notes that although the number of small-scale mining licences has increased significantly in recent years, many licence holders lack the capital, technical expertise, equipment and market access required to build sustainable mining businesses.

To bridge those gaps, the committee recommends the establishment of the Tanzania Mining Development Fund with initial government capital of $100 million.

The proposed fund would support geological surveys, improve access to financing, reduce investment risks and help miners develop bankable projects capable of attracting investors.

The report estimates that nearly $97 million would be needed to support 20 advanced mining projects.

Other recommendations include strengthening miner registration systems, expanding geological information services, improving access to modern mining technologies, classifying miners according to their investment capacity and enhancing coordination among institutions supporting the sector.

The committee argues that stronger support for small-scale miners would increase mineral production, create jobs, raise government revenues and deepen Tanzanian participation across the mining value chain.

‘The recommendations we are presenting mark the beginning of a new phase in the development of small-scale mining in Tanzania,’ Mr Tesha said.

‘With the right support systems in place, the country’s vast mineral resources can play an even greater role in driving national development.’

Speaking at the event, Minerals Minister Antony Mavunde said the government is intensifying efforts to empower small-scale miners, who account for about 40 percent of the country’s mineral production.

He said reforms introduced since 2017 have strengthened oversight of mineral trading and boosted revenue collection through the establishment of mineral markets and buying centres across the country.

‘The mining sector has undergone major transformation over the past several years, with revenues increasing substantially and more benefits being retained within the country,’ Mr Mavunde said.

According to the minister, mining sector revenues rose from Sh160 billion in the 2015/16 financial year to Sh1.3 trillion by June 2025, surpassing annual revenue targets.

He said part of that growth was driven by the increasing contribution of small-scale miners.

Among the initiatives already underway is the Credit Guarantee Corporation, which will provide guarantees covering up to 50 percent of eligible loans, making it easier for miners to secure financing from commercial banks.

‘We want our miners to have greater access to capital without depending heavily on foreign financiers,’ Mr Mavunde said.

‘Through these reforms, we are creating opportunities for Tanzanians to participate more effectively in mining and mineral trading.’

The minister also announced plans to allocate idle mining areas to active miners, expand geological research and encourage investment in mineral processing facilities to add value before minerals are exported.

He said the government is strengthening domestic gold trading systems and expanding access to local financing to enable miners to sell through local channels while enhancing Tanzania’s position in the global gold market.

Mr Mavunde expressed confidence that implementing the recommendations would unlock the full potential of small-scale mining and further increase the sector’s contribution to economic growth and industrialisation.

The president of FEMATA, John Bina, said empowering small-scale miners was essential if they were to compete effectively with larger operators and foreign investors who often have greater financial resources.

‘There is no mining without capital investment. The sector requires technology and significant financial resources to operate successfully,’ he said.

‘It is therefore important for the banking sector to support miners so that they can expand and compete effectively.’

Mr Bina said FEMATA is pursuing plans to establish a Tanzania Miners’ Bank and called on the government to support the initiative.

He cited the Bank of Tanzania’s gold purchasing programme as an example of how targeted interventions can strengthen the sector.

‘Today, the Bank of Tanzania purchases gold, creating a reliable domestic market for the mineral. That intervention has helped stabilise the market and support miners,’ he said.

President Samia Suluhu Hassan has challenged Tanzania’s financial sector to move beyond celebrating macroeconomic achievements and ensure economic growth translates into tangible improvements in the lives of ordinary citizens, particularly through affordable credit and broader access to financial services.

Speaking during the launch of celebrations marking 60 years of the Bank of Tanzania (BoT) on Thursday, President Hassan said indicators such as economic growth, financial inclusion and banking sector expansion would mean little if they fail to improve livelihoods, expand opportunities and support small businesses.

The High Court of Tanzania in Mwanza Sub-Registry has ordered the trustees of Progressive Islamic Education Foundation, operators of Bismack Pre and Primary School, to pay more than Sh363.6 million to the National Social Security Fund (NSSF) over unpaid workers’ contributions and related penalties.

The ruling, delivered on Friday, June 12, 2026, by Justice Emmanuel Ngigwana, followed a suit filed by the NSSF Board of Trustees and the Attorney General against the education institution.

The court found that the defendant failed to file a defence or seek leave to contest the claim within the period prescribed by law, prompting the matter to be determined through summary procedure. According to the judgment, the institution must pay more than Sh187 million in statutory employee contributions that were not remitted to NSSF between January 2018 and February 2024.

It was also ordered to pay more than Sh176.6 million in penalties and additional contributions arising from delayed remittances.

The court further awarded interest at seven percent per annum from the date of judgment until full settlement, in addition to legal costs.

NSSF told the court that the institution, a registered contributing employer, had failed to meet its legal obligation to remit employees’ social security contributions despite repeated follow-ups and demand notices.

Justice Ngigwana said documents submitted by the claimants, including the employer’s registration certificate, audit reports, schedules of unpaid contributions and demand letters, sufficiently proved the existence of the debt.

‘The plaintiffs have proved that the defendant, as a registered employer with NSSF, failed to fulfil its legal obligation to remit employees’ contributions,’ the court held.

The court agreed that the delayed remittances had affected NSSF’s statutory mandate to collect and safeguard workers’ contributions for future benefits.

In the absence of any defence from the institution, the court entered judgment in favour of NSSF and ordered payment of the full amount together with interest and costs.

Passengers unknowingly caught in drug trade as campaign targets bus travel

_: Hundreds of passengers, bus conductors and transport workers risk becoming entangled in drug trafficking networks simply by agreeing to carry parcels for strangers, authorities have warned, prompting the launch of a nationwide film campaign aimed at curbing the growing trend.

The initiative follows a rise in cases involving unsuspecting members of the public who have found themselves facing arrest and prosecution after unknowingly transporting luggage and packages containing narcotic drugs.

Mauricio Pochettino’s gameplan worked a treat in the United States’ 4-1 win over Paraguay in their World Cup opener on Friday, with the hosts showcasing an attacking fluidity and positional interplay that overwhelmed the South Americans.

Rather than relying ?on a single route to goal, the Americans attacked Paraguay from multiple angles, stretching the defence in wide areas and behind the back line in a performance that offered the clearest glimpse yet of Pochettino’s project.

Christian Pulisic was the focal point. Operating primarily from the left wing, the forward repeatedly drove at Paraguay’s back line, using his acceleration and close control to isolate defenders and ?create openings. While his main threat came from wide areas, he occasionally drifted inside to combine with Weston McKennie, helping ?the U.S. overload central zones and disrupt Paraguay’s defensive shape.

Those movements proved particularly problematic for right ?back Juan Caceres, who endured a difficult night as Pulisic repeatedly found space down his flank, forcing the defender into ?desperate challenges that resulted in an early booking.

The Americans’ dominance was not solely dependent on individual brilliance. Pochettino’s side frequently crowded ?central areas, with McKennie and Malik Tillman helping create numerical advantages in midfield while runners attacked the spaces created by Paraguay’s attempts to contain Pulisic.

On the opposite flank, Sergino Dest took longer to impose himself but grew increasingly influential as the match wore on.

Two powerful surges forward ?highlighted his ability to turn defence into attack in an instant, including one first-half run that could easily have resulted in ?another goal.

The variety of the United States’ attacking patterns may have been the most encouraging sign for Pochettino.

Pulisic’s wing play and combination football ?the eye, but the Americans were equally dangerous attacking directly through the middle.

Folarin Balogun’s superb individual goal on the stroke of halftime, after latching onto a defence-splitting pass from Tillman, illustrated another dimension of an attack that looked capable of hurting their opponents in several different ways.

While the U.S. overloaded midfield and committed numbers forward, Paraguay’s attacking threats struggled to bear fruit.

Julio Enciso ?and Antonio Sanabria were often ?left isolated and forced into ?low-percentage opportunities as the Americans controlled possession and territory for long stretches.

After a blistering first half, during which Balogun struck twice and the contest was effectively settled, Pochettino began rotating his ?key players.

Pulisic departed at halftime, while Balogun and Dest were later taken off, suggesting the ?Argentine was already ?mindful of the challenges that lie ahead in the group stage where they face Australia next on Friday and then Turkey on June 25.

Although substitute Mauricio briefly reduced the deficit for Paraguay, the U.S. continued to find gaps in the ?closing stages, ?and a late move carved open the Paraguay defence again before Gio ?Reyna applied the finishing touch.

The scoreline spoiled Paraguay’s first World Cup appearance in 16 years but more significantly for the hosts, it offered perhaps the clearest ?sign yet of the attacking identity Pochettino has sought to instill since taking charge.

Dar es Salaam. Tanzania’s economy expanded at a faster pace in 2025, foreign investment reached its highest level in decades and the government says the country is ready to begin implementing the newly adopted Vision 2050 development blueprint.

Presenting the State of the Economy Report 2025 and the National Development Plan 2026/27 in Parliament on Thursday, the Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo, said Tanzania was concluding the Vision 2025 era with stronger economic fundamentals despite persistent global geopolitical and economic uncertainties. According to the report, real gross domestic product (GDP) grew by 5.

9 percent in 2025, up from 5.6 percent in 2024, while GDP per capita rose by 7.

4 percent to Sh3.54 million ($1,390) from Sh3.30 million ($1,264). “The implementation of the 2025/26 National Development Plan concludes the journey of Vision 2025 and lays the foundation for the commencement of Vision 2050,” Prof Mkumbo told Parliament.

The report shows that Tanzania’s economy expanded to Sh234.1 trillion ($91.81 billion) in 2025 from Sh211.98 trillion ($81.2 billion) in 2024 following GDP rebasing using 2019 as the benchmark year. Agriculture remained the largest contributor to GDP, accounting for 24.3 percent, followed by construction (11.9 percent), mining (10.3 percent), trade and repair services (8.6 percent) and transport and storage (8.3 percent).

Financial and insurance services recorded the fastest growth rate at 15.7 percent, followed by electricity and gas (11.8 percent), mining (9.4 percent) and information and communication (8.8 percent). The government projects economic growth of 6.

3 percent in 2026 as implementation of Vision 2050 begins. Investment reaches historic high Investment emerged as one of the strongest-performing sectors during the year.

According to the World Investment Report 2025 published by the United Nations Conference on Trade and Development (UNCTAD), foreign direct investment (FDI) inflows into Tanzania increased by 28.3 percent to $1.72 billion in 2024, up from $1.34 billion in 2023. Mining attracted the largest share of investment at $442.2 million, followed by financial and insurance services ($401.3 million), manufacturing ($223.1 million) and information and communication ($152.1 million). “Overall, the statistics show that Tanzania is among the fastest-growing investment destinations in Africa and ranks 11th in terms of FDI inflows,” Prof Mkumbo said.

He also highlighted the performance of the Tanzania Investment and Special Economic Zones Authority (Tiseza), which registered 915 projects worth $10.95 billion in 2025, compared with 901 projects valued at $9.3 billion in 2024. “This number of registered projects has broken the record for project registration since the establishment of the Tanzania Investment Centre in 1996 and subsequently Tiseza in 2025,” he said. The projects, spanning manufacturing, commercial real estate, transport, tourism and agriculture, are expected to create 162,895 jobs.

Inflation remains stable The report shows that Tanzania maintained relative price stability despite global energy shocks. Average inflation stood at 3.

3 percent in 2025, compared with 3.1 percent in 2024, largely driven by higher food prices.

However, the rate remained within the national target range of three to five percent and met convergence criteria set by both the East African Community (EAC) and the Southern African Development Community (SADC). Within the EAC, Tanzania recorded one of the lowest inflation rates at 3.

3 percent, compared with Kenya’s 4.5 percent, Uganda’s 3.

6 percent and Rwanda’s 7 percent. Global risks persist Despite the positive performance, the government warned that international conflicts continue to pose risks to the economy.

Prof Mkumbo said research conducted jointly by the National Planning Commission and the United Nations Development Programme (UNDP) found that tensions involving Iran had contributed to rising oil prices, higher transport costs and supply chain disruptions. “The war against Iran has caused panic in global oil markets due to fears of disruptions in oil transportation through the Persian Gulf and other major international shipping routes,” he said.

According to the report, crude oil prices rose from about $100 per barrel in March 2026 to $126 in April before easing to between $90 and $95 in early June. The minister noted that Tanzania imports all refined petroleum products, with between 60 and 70 percent sourced from Gulf countries, India and Singapore.

Agriculture could also face challenges because Tanzania imports between 30 and 40 percent of its urea and DAP fertilisers from Gulf states, particularly Qatar. However, he said the situation could also create opportunities, including providing transhipment and cargo-storage services for vessels unable to access Middle Eastern ports and attracting investors seeking alternative destinations away from conflict-prone regions.

Poverty declines, but challenges remain The report also unveiled findings from the 2025 Household Budget Survey, the first to be conducted simultaneously in Mainland Tanzania and Zanzibar. The proportion of people living below the basic-needs poverty line in Mainland Tanzania declined from 34.4 percent in 2007 to 28.2 percent in 2012, 26.4 percent in 2018 and 25.1 percent in 2025. While describing the trend as encouraging, Prof Mkumbo acknowledged that poverty reduction remains slower than desired.

“The trend shows that greater efforts are required to accelerate poverty reduction so that it matches the pace of economic growth as envisioned under Vision 2050,” he said. Five years of progress Reviewing achievements under the Third Five-Year Development Plan and the first five years of President Hassan’s administration, Prof Mkumbo said economic growth had increased from 4.

7 percent in 2021 to 5.9 percent in 2025, while export earnings rose from $6.4 billion to $10.6 billion.

Major infrastructure milestones included the completion of 680.38 kilometres of the Standard Gauge Railway between Dar es Salaam and Dodoma, commissioning of the 2,115-megawatt Julius Nyerere Hydropower Project, completion of the Kigongo-Busisi Bridge and near-completion of the Kilwa fishing port project. The report also showed unemployment declining from 8.

7 percent in 2020/21 to 6.2 percent in 2024. The labour force reached 27.3 million people, while annual employment growth rose to 7.

8 percent from 2.3 percent.

Vision 2050 flagship projects The government says 2026/27 will mark the beginning of Vision 2050 implementation through the Fourth Five-Year Development Plan, which will focus on governance, economic transformation, human development, environmental sustainability and strategic enablers such as energy, transport, research and digital transformation. Flagship projects include the Bagamoyo Marine Eco-City and Integrated Transport Hub, the Mchuchuma-Liganga coal and iron complex, a national irrigation and agro-processing programme, a rare earth minerals processing hub in Dodoma, the LNG project in Lindi, a Great Lakes industrial and blue economy hub, and an integrated urban development programme.

The 2026/27 development plan is estimated to cost Sh86.3 trillion, with the private sector expected to finance nearly 70 percent of the programme. “Following the completion of all these Vision 2050 implementation instruments, the task before us now is only one: implementation,” Prof Mkumbo said.

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Dar es Salaam. Finance Minister Khamis Mussa Omar has indicated that the 2026/27 national Budget will include targeted tax relief measures alongside reforms aimed at expanding the tax base and improving revenue collection efficiency.

Briefing journalists in Dar es Salaam ahead of his Budget presentation in Parliament on Thursday, June 11, 2026, Mr Omar said the government is pursuing a balanced approach that supports economic growth while strengthening fiscal sustainability. He said the upcoming Budget has been prepared through broad consultations involving government institutions, the private sector, civil society, academia and individual taxpayers, resulting in 727 proposals on tax, legal and administrative reforms.

According to him, 125 proposals were accepted in full, 121 were accepted with modifications, 295 were rejected, while 107 were referred for further technical review. A further 47 lacked sufficient data for decision-making, and 32 are at various stages of implementation.

Mr Omar said the review process was guided by the Tax Reforms Taskforce and a high-level technical “think tank” comprising experts from government, research institutions and the private sector. He said the engagement was aimed at ensuring that tax policy reforms reflect national priorities while improving fairness, efficiency and compliance within the tax system.

“The objective is to widen the tax base while also reducing unnecessary burdens on taxpayers and improving the business environment,” he said. Mr Omar confirmed that the government will introduce measures aimed at simplifying tax administration, strengthening compliance and improving revenue collection systems.

At the same time, he said, the Budget will provide room for targeted tax reliefs designed to ease pressure on households and businesses, particularly in priority sectors of the economy. He added that the government remains committed to reducing multiple taxation, improving predictability in the tax regime and encouraging investment to support job creation.

The Finance Minister said the 2026/27 Budget is being prepared under the framework of the Tanzania Development Vision 2050, the Fourth Five-Year Development Plan and the CCM Election Manifesto 2025, making it a key policy instrument for long-term transformation. He said priority expenditure will continue to focus on strategic infrastructure projects, including the Standard Gauge Railway (SGR), roads, water systems, energy and human capital development.

Mr Omar urged taxpayers to meet their obligations, saying voluntary compliance remains critical to financing national development priorities. “Nation-building requires shared responsibility.

As government improves systems and reduces burdens, citizens must also play their part by paying taxes willingly and on time,” he said. (For more budget coverage, read pages 11, 12 and 13) .

World Bicycle Day is an annual global observance held on June 3. This year (2026) the occasion was celebrated on Wednesday, June 3, with the theme “Cycling for a Greener Future”.

The day is dedicated to highlighting the bicycle as an affordable, reliable, and sustainable means of transportation that benefits physical health and the enAvironment. It is possible that this day was celebrated in Tanzania; though, if that was the case, celebrations were very low key.

Which is very sad. Not many years ago, acquiring a bicycle was a main aspiration; and a feat when this ownership was realized.

The bicycle used to be the workforce for society. The bicycle owner was regarded highly, and the bicycle was a prized possession.

Raleigh (“the all-steel bicycle” from Nottingham, England) ruled high, during the colonial days and in the early years of independence. Gazelle, Humber, and BSA were brands to reckon with.

All these were from Europe. There even used to be a bicycle licence, levied each year.

The Indians came in with their Avon brand but all these were overshadowed when the Chinese came in with their Phoenix and Flying Pigeon Brands. For the mainly rural bicycle enthusiast, Phoenix is the bicycle, though, in their early days in the late seventies, these bicycles were fragile.

Few will remember that there used to be a publicly-owned National Bicycle Company (NABICO) with a factory in the Mwenge area of Dar es Salaam. In the 1970s/80s, it produced a bicycle branded Swala, the Swahili word for antelope, as part of efforts to industrialise and promote self-reliance in post-colonial Tanzania.

Swala was a national symbol representing speed, reliability, and local technological appropriation. Today, most bicycles are imported, new or second hand.

During the economic hardships days of the late 1970s and 1980s, characterized, among others, by severe fuel shortages, President Nyerere famously encouraged urbanites, particularly in Dar es Salaam, to ride Swala bicycles to and from work, instead of driving cars. The iconic photograph of Mwalimu riding a bicycle, would have, in today’s parlance, gone viral.

While for the young man of yesteryear, owning a bicycle was the goal, and indeed, some brides were transported on a bicycle on their wedding day, the young man of today yearns to own a car. Today, the UN is urging us to appreciate the importance of the bicycle.

World Bicycle Day is celebrated on June 3 each year, having been established by the United Nation’s General Assembly on April 12 2018, through a resolution that recognizes the uniqueness, longevity and versality of the bicycle as well as its contribution to sustainable development goals (SDGs). This year’s theme “Cycling for a Greener Future”, reminds us that every ride can contribute to healthier communities, cleaner air and a more sustainable future.

So, for a developing country like Tanzania, grappling with travel and a multitude of economic constraints, encouraging the use of the bicycle is appropriate. It is cheap to acquire and run; it offers immense health benefits, including lowering blood pressure; it is environmentally friendly, with zero emissions; and, it can encourage the formation of social and neighbourhood communities.

However, contemplating cycling on our urban roads is like contemplating suicide. Motor vehicle drivers are most unfriendly to cyclists.

Road designers easily leave out provisions for pedestrians and cyclists, and even when such provisions are made, they are easily taken over by traders. Those who maintain roads, hardly care about marking and repairing pedestrian and cyclist ways.

It is no wonder that bicycle fatalities are high on African roads. According to the UN, vulnerable road users–such as those walking or riding bicycles–account for roughly half of all traffic fatalities on the continent, primarily driven by a lack of protected infrastructure, reckless driving, and poor post-crash care.

We need to create a society that loves the bicycle through school and public education. Drivers, in particular, must see pedestrians and cyclists as fellow road users, not aliens.

Road designers and maintainers should provide and care for non-motorised road users. Those regulating the use of roads, should enforce regulations and impose heavy penalties for reckless drivers.

Using the bicycle should not be seen as a sign of poverty. We know of ministers in rich countries, going about their business on bicycles.

Formation of bicycle clubs need to be encouraged. Use of the bicycle must be propagated by the Honourable MPs, councillors and all professionals.

Work and popular assembly places should have facilities for cyclists such as parking and changing rooms. Next year’s World Bicycle Day, which will be on Thursday 3rd June should not pass so quietly.

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Dar es Salaam. Tanzania could face rising fuel and fertiliser costs if the conflict in the Middle East persists, the government has warned, as recent disruptions in global commodity markets have already begun affecting domestic energy prices.

Presenting the State of the Economy Report 2025 in Parliament on Thursday, the Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo, said geopolitical tensions involving Iran continue to affect global commodity markets, transport costs and supply chains. The warning comes weeks after the Energy and Water Utilities Regulatory Authority (Ewura) announced fuel prices for June 2026, citing the conflict involving the United States, Israel and Iran as a key factor influencing developments in the domestic petroleum market.

While petrol prices in Dar es Salaam fell slightly by Sh29 per litre to S,086, diesel prices increased by Sh85 per litre to S,333 despite a government subsidy of Sh534.91 per litre aimed at shielding consumers from global price shocks. According to Ewura, the conflict, which began on February 28, 2026, has heightened uncertainty in international oil markets and affected countries that rely on fuel imports from the Middle East, including Tanzania.

Prof Mkumbo told Parliament that research conducted jointly by the National Planning Commission and the United Nations Development Programme (UNDP) found that the conflict had contributed to higher oil prices, increased transport costs and disruptions to global supply chains. “The war against Iran has caused panic in global oil markets due to fears of disruptions in oil transportation through the Persian Gulf and other major international shipping routes,” he said.

According to the report, crude oil prices rose from about $100 per barrel in March 2026 to $126 per barrel in April before easing to between $90 and $95 in early June. The minister said Tanzania remains vulnerable to such shocks because it imports all its refined petroleum products, with between 60 and 70 percent sourced from Gulf countries, India and Singapore.

The report further warns that the agricultural sector could face additional pressure because Tanzania imports between 30 and 40 percent of its urea and DAP fertilisers from Gulf countries, particularly Qatar. Any prolonged disruption in the region could increase production costs for farmers and place upward pressure on food prices, according to the report.

However, the government believes the crisis could also create opportunities for the country. Prof Mkumbo said Tanzania could benefit from increased demand for transhipment and cargo storage services if access to some Middle Eastern ports becomes constrained by the conflict.

“For example, there is an opportunity to provide transhipment and cargo storage services for vessels unable to deliver cargo to Middle Eastern ports because of the conflict,” he said. The government also expects Tanzania to attract investors seeking alternative destinations away from conflict-prone regions as implementation of Vision 2050 gathers pace.

The warning comes as Tanzania seeks to sustain economic growth, maintain price stability and attract investment while navigating growing uncertainty in the global economy. .

Dar es Salaam. Tanzania’s economy grew by 5.

9 percent in 2025, up from 5.6 percent in 2024, as the country concluded implementation of its Development Vision 2025 and prepared to embark on the newly adopted Vision 2050 development agenda.

Presenting the State of the Economy Report for 2025 and the National Development Plan for 2026/27 in Parliament on Thursday, Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo, said the latest performance reflected continued economic resilience despite global uncertainties. According to the report, gross domestic product (GDP) expanded to Sh234.1 trillion in 2025 from Sh211.98 trillion recorded in 2024 following the completion of GDP rebasing using 2019 as the benchmark year.

“According to the new statistics based on the 2019 benchmark year, real GDP grew by an average of 5.9 percent in 2025 compared with 5.

6 percent in 2024,” Prof Mkumbo told Parliament. The country’s GDP per capita rose by 7.

4 percent to Sh3.54 million ($1,390), up from Sh3.30 million ($1,264) in the previous year. Agriculture remained the largest contributor to the economy, accounting for 24.3 percent of GDP, followed by construction at 11.9 percent, mining at 10.3 percent, trade and repair services at 8.

6 percent and transport and storage at 8.3 percent.

Among the fastest-growing sectors were financial and insurance services, which expanded by 15.7 percent, electricity and gas at 11.8 percent, mining at 9.4 percent and information and communication at 8.

8 percent. The report also showed that inflation remained relatively stable despite global economic pressures.

Average inflation stood at 3.3 percent in 2025, slightly higher than 3.

1 percent recorded in 2024, largely due to increased food prices. However, the rate remained within the government’s medium-term target range of between three and five percent and met the convergence criteria of both the East African Community (EAC) and the Southern African Development Community (SADC).

“Despite the increase, the rate remained within the national medium-term target and satisfied the economic convergence criteria of both EAC and SADC,” said Prof Mkumbo. Within the EAC, Tanzania recorded one of the lowest inflation rates, compared to Kenya’s 4.

5 percent, Uganda’s 3.6 percent and Rwanda’s seven percent.

The report further revealed that poverty levels continued to decline, although the government acknowledged that the pace of reduction remains slower than desired. Results of the 2025 Household Budget Survey showed that the proportion of Tanzanians living below the basic needs poverty line in Mainland Tanzania fell to 25.1 percent, compared with 26.4 percent in 2018, 28.2 percent in 2012 and 34.4 percent in 2007. “The trend shows that greater efforts are required to accelerate poverty reduction so that it matches the pace of economic growth as envisioned under Vision 2050,” Prof Mkumbo said.

The government now projects economic growth of 6.3 percent in 2026. .

Dodoma. Tanzania’s public debt rose by 8.

97 percent to Sh114.34 trillion as the government continued to borrow from both domestic and external sources to finance development projects across the country. According to the National Development Plan tabled in Parliament on Thursday June 11, 2026, the debt reached Sh114.34 trillion as of March 2026, up from Sh104.93 trillion recorded during the corresponding period in 2025. The report also shows that domestic debt stood at Sh38.45 trillion, while external debt amounted to Sh75.89 trillion.

“The increase in debt resulted from the government continuing to receive both new and existing loans from domestic and external sources for the implementation of development projects,” the report states. Despite the rise in debt, the government maintained that Tanzania’s debt remains sustainable over the medium and long term.

According to a debt sustainability assessment conducted in November 2025, the country’s debt indicators remained within internationally accepted thresholds during the 2025/26 financial year. The assessment found that the present value of external debt to Gross Domestic Product (GDP) stood at 24.4 percent, well below the 40 percent ceiling, while the ratio of external debt to exports was 123.1 percent against a threshold of 180 percent, according to the document.

Similarly, external debt servicing accounted for 12.8 percent of export earnings compared with the 15 percent limit, while debt service as a share of domestic revenue stood at 15.4 percent, below the 18 percent ceiling. The present value of total public debt to GDP was 39.6 percent, lower than the sustainability threshold of 55 percent.

“According to the assessment, government debt is sustainable in the medium and long term,” the document states. The report also highlights Tanzania’s stable sovereign credit ratings, citing positive assessments by international rating agencies.

In February 2026, Moody’s Investors Service maintained Tanzania’s B1 credit rating with a Stable Outlook, unchanged from March 2025. Fitch Ratings also affirmed the country’s B+ rating with a Stable Outlook in March 2026. The government said the ratings reflected the country’s strong economic fundamentals, including sustained GDP growth, stable inflation and prudent debt management. “This is attributable to the continued strength of economic fundamentals, including GDP growth, inflation stability and sustainable government debt,” the report notes.

According to the government, the ratings are expected to bolster investor confidence and enhance Tanzania’s access to international financing. The report states that the positive assessments “strengthen the confidence of domestic and foreign investors in the stability of the economy and the government’s ability to manage debt,” helping to lower borrowing costs in international markets and improve access to financing for development projects.

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